China’s central bank throws weight behind new, emerging global currency system
The post China’s central bank throws weight behind new, emerging global currency system appeared on BitcoinEthereumNews.com. China’s top monetary official said the global financial system is moving away from the US dollar, and China wants to push the renminbi into a more dominant role. Speaking on stage at a financial forum in Shanghai, Pan Gongsheng, governor of the People’s Bank of China, said the world is entering a new phase. After decades of US control over international currency flows, Pan said a “multi-polar international monetary system” is emerging. He warned about the dangers of “excessive reliance” on one currency and said the global economy may soon be run by several sovereign currencies that keep each other in check. According to the Financial Times, Pan said the rise of the euro and China’s own renminbi since the 2008 financial crash were the biggest changes to the global system in the last 20 years. He described the renminbi as already being the world’s second-largest trade finance currency and third-largest for payments. The message was simple: the renminbi isn’t coming — it’s already here. And China is ready to go further. China builds out global payments and currency infrastructure Pan’s comments followed a statement by Christine Lagarde, president of the European Central Bank, who said the “dominant role of the dollar” is “no longer certain.” She suggested the euro might take up more global space. But while Europe talks, China acts. On the same day Pan gave his speech, six foreign financial institutions — including OCBC Bank in Singapore and Eldik Bank in Kyrgyzstan — announced they were joining CIPS, China’s alternative to the Swift payment system. China also announced a new digital renminbi operations center in Shanghai, expanding its digital currency program internationally. And in a move to link mainland and offshore money markets, authorities in Hong Kong and Shanghai signed an agreement to cooperate on how renminbi-denominated…
The post China’s central bank throws weight behind new, emerging global currency system appeared on BitcoinEthereumNews.com.
China’s top monetary official said the global financial system is moving away from the US dollar, and China wants to push the renminbi into a more dominant role. Speaking on stage at a financial forum in Shanghai, Pan Gongsheng, governor of the People’s Bank of China, said the world is entering a new phase. After decades of US control over international currency flows, Pan said a “multi-polar international monetary system” is emerging. He warned about the dangers of “excessive reliance” on one currency and said the global economy may soon be run by several sovereign currencies that keep each other in check. According to the Financial Times, Pan said the rise of the euro and China’s own renminbi since the 2008 financial crash were the biggest changes to the global system in the last 20 years. He described the renminbi as already being the world’s second-largest trade finance currency and third-largest for payments. The message was simple: the renminbi isn’t coming — it’s already here. And China is ready to go further. China builds out global payments and currency infrastructure Pan’s comments followed a statement by Christine Lagarde, president of the European Central Bank, who said the “dominant role of the dollar” is “no longer certain.” She suggested the euro might take up more global space. But while Europe talks, China acts. On the same day Pan gave his speech, six foreign financial institutions — including OCBC Bank in Singapore and Eldik Bank in Kyrgyzstan — announced they were joining CIPS, China’s alternative to the Swift payment system. China also announced a new digital renminbi operations center in Shanghai, expanding its digital currency program internationally. And in a move to link mainland and offshore money markets, authorities in Hong Kong and Shanghai signed an agreement to cooperate on how renminbi-denominated…
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